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Bad Credit Mortgages

Fill in our quick form to get a same day callback from an expert adviser!

While bad credit mortgages may come with higher interest rates and stricter terms, they offer a vital lifeline to those wanting to get on the property ladder despite their poor credit scores. Deedle aims to connect you with specialised lenders who offer mortgages to people with all credit scores.


Enquire For Mortgages With Bad Credit

What Is a Bad Credit Mortgage?

What Is a Bad Credit Mortgage?

A bad credit mortgage, also known as a subprime or adverse credit mortgage, is a type of home loan specifically designed for individuals with a less-than-ideal credit history.

Lenders offer bad credit mortgages to borrowers who may have experienced financial difficulties in the past, such as missed payments, defaults, or bankruptcies. These situations often make it challenging to get approved for a standard mortgage, but bad credit mortgages provide an opportunity to get on the property ladder.

How To Get A Mortgage With Bad Credit

Step 1
Fill in Our Enquiry Form
Enter key details on our online enquiry form which is easy and straightforward to complete.
Step 2
Receive A Callback
You will then receive a callback on the same day from an expert mortgage advisor who will ask a few more follow up questions.
Step 3
Check If You Qualify
Our dedicated professionals will then use this to work out how much you can borrow and find affordable rates for you.
Step 4
Receive Your Bad Credit Mortgage
Once we have found a loan to suit your borrowing needs, our advisers will submit your application to help you purchase a property.

How Much Can I Borrow With a Bad Credit Mortgage?

The amount you can borrow with a bad credit mortgage will depend on several factors, including the lender’s policies, your credit score, income, and affordability. Bad credit mortgages are often riskier for lenders, so they may impose more conservative lending limits compared to standard mortgages.

For example, if you had a bad credit mortgage on a property valued at £250,000, a lender offering a maximum loan-to-value (LTV) ratio of 75%, you could potentially borrow up to £187,500, subject to affordability assessments and the lender’s specific criteria.

How Much Can I Borrow With a Bad Credit Mortgage?

What Are the Pros and Cons of Bad Credit Mortgages?

Pros of Bad Credit Mortgages

  • Homeownership: It offers a chance for people with bad credit to own their homes instead of renting, letting them build equity.
  • Credit Improvement: Making timely mortgage payments can contribute to improving your credit score over time. Although this should not be the key motivator behind taking out a mortgage it is a nice plus.
  • Increased Housing Options: With a bad credit mortgage, you have more housing options compared to renting, especially because landlords can up the rent or refuse to renew your contract. You can choose a property that suits your needs and preferences, giving you more control over your living situation.
  • Potential for Staircasing: If you’re using a bad credit mortgage for shared ownership, you have the opportunity to increase your ownership share over time through staircasing.

Cons of Bad Credit Mortgages

  • Higher Interest Rates: Bad credit mortgages often come with higher interest rates compared to standard mortgages, making them more expensive overall.
  • Larger Deposit Needed: Lenders may impose stricter terms and conditions on bad credit mortgages to mitigate their risk, including asking for larger deposits.
  • Limited Lender Options: Not all lenders offer bad credit mortgages, which reduces the pool of available lenders.
  • Risk of Repossession: If you default on your mortgage payments, the risk of repossession is higher with bad credit mortgages. Lenders have less tolerance for missed payments and may take action to recover their investment.
  • Limited Access to Special Offers: Borrowers with bad credit may not qualify for special mortgage offers or incentives available to those with good credit scores.

Apply For Poor Credit Mortgages

Why Should I Get A Poor Credit Mortgage Through Deedle?

Deedle is an independent advisor. We can help you find a bad credit mortgage by collaborating with specialised mortgage providers. Our unbiased advice and access to a wide array of mortgage products will help us match you to the perfect lender, no matter your credit score or budget.

Where Can I Get A Poor Credit Mortgage in the UK?

You can get a bad credit mortgage to purchase a property anywhere in the UK. Deedle can help you no matter where you’re located. For example, we help people get bad credit mortgages in:

  • London
  • Birmingham
  • Manchester
  • Glasgow
  • Leeds
  • Edinburgh
  • Liverpool
  • Liverpool
  • Bristol
  • Newcastle upon Tyne
  • Sheffield
  • Cardiff
  • Belfast
  • Nottingham
  • Leicester
  • Oxford
  • Cambridge
  • Norwich
  • Brighton
  • Plymouth
  • Aberdeen

Get Bad Credit Mortgages in the UK

Can I Get a Bad Credit Mortgage With a Recent Bankruptcy on My Record?

Yes! While it may be more challenging to secure a bad credit mortgage with a recent bankruptcy, it is not impossible. Some lenders may consider applicants with bankruptcies that have been discharged for a certain period.

However, expect higher interest rates and stricter terms. To increase your chances, work on rebuilding your credit and saving for a larger deposit.

Will a Bad Credit Mortgage Have Higher Interest Rates?

Yes, bad credit mortgages usually come with higher interest rates than standard mortgages. The elevated rates reflect the increased risk to the lender due to the borrower’s poor credit history.

As your credit score improves over time, you may have the opportunity to remortgage to a better rate in the future. You can even remortgage with bad credit, although again these will come with less favourable rates.

Frequently Asked Questions About Poor Credit Mortgages

Is Adding Someone to a Mortgage With Bad Credit a Good Idea?

Adding someone with bad credit to a mortgage can impact the overall creditworthiness of the application. Lenders have to consider the credit profiles of all parties involved when looking at the loan application.

Can I Get a Shared Ownership Mortgage With Bad Credit?

Yes, you can get a shared ownership mortgage with bad credit. Shared ownership lenders understand that buyers may have past financial difficulties, and they may be more flexible than traditional mortgage providers.

How Does a Bad Credit Shared Ownership Mortgage Work?

With a bad credit shared ownership mortgage, the buyer applies for a mortgage specifically tailored for individuals with impaired credit histories. Once approved, the buyer can select a share of the property they can afford (typically between 25% to 75%) and pay a deposit on that share.

The buyer will then pay a monthly mortgage payment on the share they own and a subsidised rent on the remaining share. As the buyer’s financial situation improves, they have the option to increase their share through staircasing.

How Can I Improve My Chances of Getting a Bad Credit Shared Ownership Mortgage in the UK?

  • Check Your Credit Report: Get a copy of your credit report and review it for errors or inaccuracies. Call them to fix any issues if you spot them.
  • Save for a Larger Deposit: Saving for a larger deposit demonstrates your commitment to homeownership and may make you a more attractive borrower.
  • Demonstrate Stability: Lenders may consider factors like stable employment and residence history as positive indicators of financial responsibility.
  • Seek Professional Advice: Consult with a mortgage advisor for free through Deedle. If you fill in our quick form, an advisor will contact you to discuss your best options.

Are There Bad Credit Mortgage Loans With Guaranteed Approval?

No, there are no lenders that offer guaranteed approval except ones who are misleading consumers. However, some lenders may have more lenient criteria for bad credit applicants.

Are Subprime Mortgages Still Available?

Yes. The subprime mortgage crisis of 2007 to 2008 meant the availability of such mortgages decreased temporarily. However, they are back under different names (bad credit mortgages, non-prime mortgages, etc.)

What Questions Should I Ask Potential Bad Credit Mortgage Lenders?

  1. What are the interest rates and fees for your bad credit mortgages?
  2. What are the eligibility criteria for a bad credit mortgage?
  3. How long does the application process take?
  4. Can you provide pre-approval to help with property hunting?
  5. Are there any additional requirements for bad credit mortgage applicants?
  6. What documentation is needed?